n NISM Certifications
X NISM Series X
Medium

For interest earned in USD, the conversion rate used for tax purposes in India is the rate prevailing at the end of the month immediately before the income accrues—in this case, Rs. 74, based on the last day of August.

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Rs. 69

  2. B

    Rs. 73

  3. Rs. 74

    Correct answer

  4. D

    Rs. 72

Why this is the answer

Income from foreign securities is converted using the SBI telegraphic transfer buying rate on the last day of the preceding month, here August 31, which is Rs. 74.

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